Brexit negotiations reach the end of the beginning

The latest Brexit developments support MUFG's outlook for a stronger pound in the year ahead, according to Lee Hardman, currency analyst at MUFG. The pound has been one of the best performing G10 currencies this year, and a smoother Brexit adjustment will dampen downside risks for the UK economy, and encourage the Bank of England to speed up the planned pace of rate hikes in 2018.

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